WorksheetsWholesale Trade MCQ Part 1
Total questions: 10
Worksheet time: 50mins
What is the advantage to a manufacturer of using the channel of distribution shown?
manufacturer → wholesaler → retailer → consumer
The goods reach the consumer quickly.
The manufacturer’s distribution costs are saved.
The manufacturer must store the goods.
The selling of goods is controlled by the manufacturer.
Which service is provided by wholesalers to manufacturers?
forecasting the likely changes in the market
giving information on record-keeping
operating a cash-and-carry facility
providing a wide range of goods
The table shows the cost to the retailer of purchasing canned food from three different sources.
Why is the cash and carry wholesaler able to quote the lowest price?
goods are sold only to large-scale retailers
no advertising costs are involved
no delivery or credit is offered
storage is not required
What is the name of an agent who buys and sells goods on a commission basis for another
person?
broker
manufacturer
retailer
underwriter
In which trade is the wholesaler most likely to be eliminated?
blankets
bread
clothes
meat
A general wholesaler acts as a middleman between the manufacturer and the retailer.
Which function carried out by the wholesaler benefits both the manufacturer and the retailer?
clearing stocks to enable production to continue
displaying goods ready for sale
giving help and advice on the use of new products
taking the risks of damaged and unsold goods
Which agent advises companies on the best means of moving goods?
broker
del credere agent
factor
freight forwarder
Which service does a wholesaler provide for retailers?
credit information about customers
debt collection
maintenance of goods
wide variety of goods
A factor is an agent who
charges higher commission than other agents.
guarantees to sell goods for his principal.
owns the goods that he is offering for sale.
sells the goods which he has in his possession.
A retailer is most likely to use a wholesaler when
bulk orders are required by the retailer.
goods are large and fragile.
goods need after-sales service.
the retailer has a small-scale business.
